Rupee edged up 0.5% to 95.75 per dollar, its first gain in seven sessions, as Brent crude slipped 1.3% to $103 a barrel, easing supply‑disruption fears in West Asia.
The market had seen the currency slide past 96 last week, but RBI’s active dollar‑rupee swaps steadied the run.
10‑year government bond yields hovered at 7.05%, just above the 7% line that has been a barometer for inflation expectations; the uptick follows a recent climb in global yields.
Analysts note the rupee’s rebound is more a reaction to crude easing than a shift in fundamentals, and investors will watch further oil price moves, RBI’s FX interventions, and central‑bank signals for clues.
Moving forward, traders should monitor the 7% yield threshold and RBI’s swap volumes, while fund managers keep an eye on inflation data for potential policy pivots.